There isn’t a clear-cut answer, because
each scenario has its own set of pros and cons and honestly, it really comes
down to your lifestyle and how you prefer to pay for things. Let’s compare
leasing with financing in a little more detail:
Lease – The vehicle is titled in GM’s name, and at the end of term, you have the
option to purchase the vehicle or turn it in and lease a new one.
Finance – The vehicle is titled in your name, and you own the vehicle free and
clear after the terms of your purchase finance agreement are fulfilled.
Lease – The down payment amount required for leasing varies based on the
lease transaction structure and monthly payment you desire, but in general,
is often lower than financing.
Finance – In some cases, the down payment amount needed for buying may be
higher when compared to leasing.
Lease – Kilometer limits (typically 20,000 or 24,000 yearly) apply as per your
lease agreement, and charges may be applied if these limits are exceeded.
Finance – No contractual limits on kilometers apply, however vehicle resale
values generally decrease as more kilometers are added.
Lease – You are required to service the vehicle as per GM’s maintenance
schedule and cannot make any changes to the vehicle’s appearance.
Finance – You can change the appearance of the vehicle, and select which
repairs to make, subject to the terms of the purchase finance agreement.
Lease – Monthly payments may be lower than financing the same vehicle, since
you only pay for the value of the vehicle during the term of the lease.
Finance – Monthly payments may be higher than leasing the same vehicle, as
the full value of the vehicle is paid over the term of the contract.
TAX SAVINGS FOR BUSINESS OWNERS
We have seen more and more businesses leasing vehicles to enjoy tax savings.
We recommend you speak to your accountant to see how you could benefit
from leasing your next vehicle.
In a nutshell, leasing makes it easier to get more car for less money, as you only
pay for the use of the vehicle for two or three years, instead of paying for the
vehicle itself. Financing, on the other hand, frees you from the restrictions
involved in leasing, such as mileage caps, and the vehicle is yours to do with as
Have you ever wondered if you get more money by selling your car privately or
from trading it in at the dealership? Stay tuned for our next article.
Insurance rate increases absolutely unacceptable: NDP Critic for Service Alberta
This post was submitted by Jon Carson, NDP MLA for Edmonton-West Henday, Opposition Critic for Service Alberta
Thirty per cent.
That’s how much auto insurance rates skyrocketed by for some Albertans at the end of this year, after Premier Jason Kenney and the UCP removed the five per cent cap on rate increases that our NDP government brought in, taking a “no limit” approach to how much insurance companies could actually raise rates.
The jump was immediate.
Albertans saw a wave of premium increases bordering on price gouging. Over 90% of car insurance companies filed for rate increases as soon as the cap was lifted, and rushed to bill drivers as soon as they could. Of the companies that received approved rate changes, the increases ranged from 4.9 per cent to an eye-popping 29.8 per cent.
It was a nice gift from Jason Kenney, who already slammed families for hundreds of dollars of new costs in his fall budget, including hikes to income tax, property tax, as well as more in school fees, prescription drugs and college tuition.
As usual, Finance Minister Travis Toews trotted out the UCP’s one-trick pony and blamed the NDP, claiming that insurance companies were set to pack their bags and flee the province if he didn’t let them jack up premiums beyond five per cent.
The lobbying effort came out in full force. The brokers, the insurance companies, and the Insurance Bureau of Canada are working overtime to sell quite the sob story: a massive spike in claims costs, not enough options for drivers, etc, etc. It’s tough times for the poor, little ol’ car insurance company.
What a load. These are some of the biggest and most profitable companies in Canada, and they simply want back the power they had to jack up premiums hand over fist.
The truth is that claims costs over the past few years are level, a fact that’s supported by the Insurance Bureau of Canada‘s own data. In fact, an actuarial analysis by Fair Alberta Injury Regulators, an organization made up of concerned Albertans, doctors and legal experts, found that injury payouts have stabilized in the last few years, and even started to dip in 2019. Their actuary specifically found evidence that claims are “not skyrocketing.”
This is further supported by the Alberta Superintendent of Insurance, responsible for all regulatory oversight of insurers operating in Alberta with a specific duty to ensure that insurance companies treat Albertans fairly. In his annual report for 2018, he found on average that the claims ratio for car insurance was 80 per cent across all companies in Alberta. Not the 120 per cent figure the insurance companies trot out on TV.
And while the UCP Government continues to claim they have documents to prove the cap made the car insurance industry unsustainable, they haven’t provided a single piece of paper showing any of these companies would bail if they could–GASP–only raise premiums five per cent every year.
So why remove the cap? Well, in politics, it’s who you know. And Jason Kenney knows an awful lot of people in the insurance industry. Namely, his former chief of staff and campaign director Nick Koolsbergen, who was hired to lobby the Premier on behalf of the car insurance industry just last year. He has Kenney’s cell phone number.
Sounds like a good guy to have on your side… if you’re a car insurance company.
The fact is, these companies turn a profit of tens of millions of dollars each year. They’re used to having carte blanche in Alberta, and they want it back.
Under the thinly-veiled guise of “red tape reduction”, the UCP has struck a panel looking at more regulatory changes that the insurance lobby itself has said “could also change the rate regulation framework that governs how insurers set premiums.”
If costs are going to go up even more, who will Jason Kenney look out for? His friends and interests in big insurance? Or everyday Albertans driving to work?
Knowing Jason Kenney, Albertans should brace for impact.
Jon Carson is the MLA for Edmonton-West Henday and the Alberta NDP Opposition Critic for Service Alberta.
Is it time for a Wheel Alignment?
Bad roads can be your wheels’ worst enemy. If you drive down poorly maintained roads, drive through potholes, or even hit a curb, your alignment can be greatly affected. This can cause even the slightest, tiniest alignment issue, which can accelerate uneven tire wear. Make sure you have your alignment checked every 9,500 km or every other oil change. Your tires and your wallet will thank you later. Uneven tire wear is a symptom of bad wheel alignment. Ideally, tires should wear evenly across the tread. If you’re noticing excessive wear on the rear inside tires, you may have too much junk in the trunk or need an alignment adjustment.
Uneven tire wear can also result in less KPL’s and more pain at the gas pump. How will a wheel alignment help my vehicle? Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.
How will a wheel alignment help my vehicle?
Repeat after us: A wheel alignment ensures optimal drivability. It will help your tires last longer, your vehicle drive smoother, ultimately keeping your wheels pointed in the right direction. And, when it drives more smoothly, it’s smooth sailing—or should we say cruising—ahead. Plus, your car will require less energy to keep going, potentially saving a ton of fuel depending on how much alignment was required. Tires are expensive. Keeping them aligned isn’t.
How can I tell if my car’s alignment is off?
There are some noticeable signs that could indicate a misalignment. Just use your eyes, ears and hands. Your senses (and even the good old personal hunch) are good human capital for spotting poor alignment. Here are some common signs that you are dealing with wheels with poor alignment:
• Vehicle pulling to the left or right
• Uneven or rapid tire wear
• Your steering wheel is crooked when driving straight
• Squealing tires
Call to book 403.343.6633 or book your appointment at kippscott.ca
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